tv [untitled] August 31, 2012 8:37pm-9:07pm EDT
on the doors so we move on to the next headline with in mind the notion that they think it's still like in the old times where everything was guaranteed by the state why all these polish people got scammed by this obvious fraud where they had guaranteed returns what happens when the music stops. a report from the federal reserve bank of new york suggest that the bulk of equity returns for more than a decade are due to actions by the u.s. central bank the s. and p. five hundred index will be more than fifty percent lower around the six hundred level if the bullish price action preceding fed announcement was excluded the study shows now if you look at this chart you'll see that the report shows that the market would has a tendency to rise in the twenty four hour period before the release of the fed statement on interest rates and the economy presumably on expectations that chairman ben bernanke and his predecessor alan greenspan would discuss or implement
a stimulus money printing measure to lift asset prices but as i've explained the fed is essentially at the the head of the river of cash and up until recently that river of cash would irrigate the economy equally jobs would be irrigated wages would rise the manufacturing sector would there be a benefit to them they'd have rising wages you'd have real estate rising you'd have stocks rising but due to financial engineering and the adoption of derivatives and high frequency trading that irrigation now is being manipulated so that the cash only goes into stocks a few stocks owned by insiders in washington and wall street and that's the only place it goes and when bedrock it goes in for congress as we're worried about deflation we're worried about deflation he fails to say that he engineer or as you just pointed out again in the stock market that's where the inflation is going
that's that's the inflation dow jones getting close to fourteen thousand without the fed the dow jones would be at five thousand or less and that's what he that's what he should be talking about this is his re engineering of the economy to benefit a few stockholders and to disenfranchisement of the entire country it's reengineering . look at that chart again the line on the bottom that red line that is what the s. and p. would look like today with out front running the fed the blue line is showing that the federal open market committee has released eight announcements a year at two fifteen pm eastern time since one thousand nine hundred four the study took the gains in the s. and p. five hundred from two pm the day before the announcement to two pm the day of the statement and subtracted that market move from the s. and p. five hundred total return over that time here's what we're talking about here the insiders have access to unlimited credit at virtually no cost that's the great thing about having interest rates near zero for the elites everyone else remember
pays a lot more for interest and if you're at the bottom of the socio economic scale you're paying an annualized rate of four hundred percent for money but if you're at the top you pay no money to borrow money so yeah you understand that they're going to now do quantitative easing so you call your broker as two thousand and nine remember in two thousand and nine hank paulson told his buddies at goldman sachs and on wall street that the government of what she was then working for was not going to lead goldman collapse they all the guys then went out on margin borrowed against everything that they could borrow against and went long bank stocks incredible amount of money was made in two thousand and nine people's wealth tripled quadrupled in two thousand and nine based on the fact they can borrow money and zero per cent interest rate with no risk now they call themselves captains of industry and entrepreneurs' but you know a recent smokie can make money in that environment it's no big trick to be able to borrow money at zero percent and and rule rule the roulette wheel on guaranteed
winners how is out of business choice well going back to that first story they underestimated the risk because they assume the government would be there to protect them in this case and you notice that with this study it stops at two pm of the day of the fed announcement so if you don't have your bets in by fifteen minutes before the fed speaks. then you're too late if you don't if you're not done by two pm you're not going to catch your tee time ok you can get nine holes in a development club in connecticut if you get it all done by two pm you get nine holes and i've done it and then finally occupy sets wall street tie up as protesters face burnout so occupy wall street the global movement against inequality that ignited in manhattan last year with markets first anniversary by trying to block traffic in the financial district and circle the new york stock exchange it's called s. seventeen september seventeenth they're planning on making some citizen arrest but bloomberg news here asks that now the next step for occupy is they have to decide
whether they want to do what most americans want which is a little bit of reform to the system or whether they want to take down capitalism or bloomberg of course would make that statement because he's trying to defray attention from the real underlying issue here is whether capitalism is going to be taken down or challenge because we don't have capitalism the train left the station lower down what do we've got to entrench kleptocracy and unfortunately what occupy wall street is completely missing the boat here they don't really understand what the problems are they don't understand who the players are they don't understand what tactics can get them over and i've explained to them several times what tactics they can use to neutralize the level of influences that are destroying this economy but they fail to take note they don't want to do it any effective way because after all if they succeeded then they might actually have to move on with their lives and go to a post success story all right stacey newman thanks so much for being on the kaiser
report think you max. much more coming your way. in the. download for sure. so choose your language stream quality and enjoy your fair. t.v. is not required to watch on t.v. all you need is your mobile device to watch on t.v. any time. sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know i'm tom harpur welcome to the big picture.
for your media project. tom. welcome back to the kaiser report imax guys are time now to go to moscow idaho to talk to john rubino of dollar collapse dot com your ringside seat for the global financial crisis john bloggs there but also provides dozens of links to stories relevant to the currency wars financial collapse gold and silver john welcome to the kaiser report and max thanks for having me on the right john robineau your web site is called dollar collapse dot com tell us about the collapse of the dollar what is the process of collapse and is the end near or in fact here you know we've been talking about this theme for a number of years now dollars been edging lower are we at the collapse point now john you know what this is it was actually set up as a marketing site for
a book that james turtle gold money and i co-wrote back in two thousand and four and at the time we kind of caught up in a collapse of the dollar in particular in the currency system the world in general was imminent and and we were wrong the system has held on a lot longer than. we expected at the time in the basic processes is not that complicated we are in the u.s. and also the rest of the world are just borrowing too much money you know we've created a system where governments around the world have printing presses which inevitably are abusing you know every every time there's a lecture in a lecture and you get massive amounts of new currency being created in the hopes of you know. using the skids with the incumbents and in the process we've built up huge amounts of debt which we can carry and at some point the excessive currency creation process is going to lead just through supply and demand to
a sense around the world with these paper currencies are really worth anything anymore and then everybody's going to have to be exits at once and we'll see a collapse of confidence in paper currency in particular in the u.s. but also around the world in general you know because if your currency is going to be discredited at some point and it's the general trend is going to be more and more currencies followed by more and more money printing followed by more and more crises based on the you know caused by the money pretty much poorer and better world and so the only thing that we can do now as individuals especially is the position as the folks who are increasing monetary crisis and a general shift out of paper currencies and paper assets and into real assets so you know all roads seem to lead to go in silver right now. right so the book came out in two thousand and four dollar collapse the thesis was that this dollar
collapse was eminent and the it has dragged on for some time and during this time we've seen it zero percent interest rate policies around the world by the federal reserve policy and now the european central bank is pursuing a much cheaper interest rates heading towards zero percent interest rates so this this this crisis has been ameliorated by the ability of these central banks to bring rates shockingly low which of course penalizes savers penalizes the pensioners just subsidize the speculators who work on the dollar but this has given some extra innings to the dollar but at some point even those extra innings come to . close and i think what we're seeing now with some of these prices in the commodities sector spiking to all time highs are twenty or thirty year highs and maybe this is the dollar collapse inflationary spike the timing seems to be right
now john your thoughts when it comes this is what do you like the early stages of it and again these guys have so many weapons and basically they have unlimited printing presses they didn't know you know your house is worth a million dollars they want to they could buy your house for two million and make you feel a ridge make you spend and keep the get go and for a little while longer so you never know when it's going to fall apart but this is what it would feel like with gold and silver and oil all going up and farmland getting more valuable and and paper assets becoming less and less interested and everybody because they don't return and so money is flowing into hard assets because they been growing relative to paper sets over time and let the process accelerate and you get hyperinflation although it's not due to the oversupply of money as much as it is a lack of confidence in the existing currencies that are out there and yeah we
could see the current process accelerated until it turns into a wholesale flight of your currency or we can see these go as come up with some new trick to pull this again for another two years and there's really no way to know right well i want to follow up on the zero percent interest rates on a bit more because part of the zero percent interest rate story what we're learning is that not only are the the the banks offering these rates and the central banks offering these rates to keep the speculators happy but in the case of the bank of england barclay and barclays and the library rate setting in the u.k. they're actively engaged in fraud and market manipulation to keep interest rates at an artificially low level to help out speculators so the fraud has. has now jumped to the institutional level the bank of england has been clearly implicated in a wholesale fraud probably the first time it's in a multi hundred year history as the bank of england mervyn king went so horribly
discredited doesn't end even the back of international settlements the central bank of central banks is waving their finger at these other central banks saying you guys need to stop committing the fraud isn't that worrying john oh yes it's all fraud governments lie all the major statistics that it really is you know in the us obviously everybody knows about them or unemployment inflation numbers being distort and interest rates of the same thing you know that they're they're lying to us about the fundamental reality of the economy in order to be able to keep interest rates lower than they would be otherwise because you know the bond markets actually understood what was happening you'd see interest rates spike around the world. just because they are in the peripheral euro zone countries you know people are figuring out that spain and italy can't pay their bills but we in the u.s. are just as bad a shape except we've been able to to maintain the fiction. that we're in
better shape than a lot of these other countries and you know basically we're becoming a third world country and so far we've been able to hide the macro facts that basically the lifestyle that americans have come to take for granted are disappearing everywhere in every sector of the economy and the question is how much longer can the product continue first of all and you know once it's exposed then everybody has the exit in the in the game hand and secondly what happens to the people that. have been committing these broad you know these guys are committing criminal acts as you say on the show a lot and in any other walk of life. these kinds of buy in the angela lives would be considered crimes and you go to jail for it but if you're a major bank or they had a better reserve or the head of the bank of england you somehow can get away with this and because it's seen as macroeconomic policy or monetary policy where lying
is basically accepted as a way to help you help the people that you're you're in office to help ok and obviously that that's the fundamental flaw in the system now that these guys get away with it and the question is how much longer you know do we end up putting these guys in jail and i you know i hope so. but right now the people who would have to prosecute the criminals are the criminals and so we won't see it until we see some kind of regime change or some kind of dramatic change in public sentiment here presence beyond that that movement ron paul's the pet project. is the first step in the public taking back. control of the mechanisms of more material is good policy and you know should we discover actual crimes there you know blatant. undeniable criminal activity then that could open the floodgates know maybe we
point out the that we're doing things which you know we do a real or a better we would find out a lot of criminality and maybe the people who were responsible were actually get punished work and that would be such a sea change in u.s. policy at least i think it would spread to the rest of the world maybe that would be a good thing that the farming tips the balance and you know sends us off the edge as far as we are currencies go i don't know but it's wonder that he and it you know is kind of a one would be nice to see these guys get punished were the crimes committed against sabers in the tours and the rest of us right well john you know i acted in all its point direction toward a john course i'm for example former c.e.o. of goldman sachs former governor new jersey he was caught stealing one point five or one point two billion from m.f. global. jamie diamond as an accomplice is defense was the money simply vaporized and now he's back in business again he's going to be starting a hedge fund so they caught him red handed they said in his defense was the money
simply vaporized no penalty whatsoever no public outrage whatsoever even though segregated customer accounts were stolen by john corazon and jamie diamond absolutely no prosecution whatsoever but i want to ask you about two thousand and eight for a second because back in two thousand and eight the total global financial system came to the precipice of annihilation but was pulled back when hank paulson went before congress and extorted close to a trillion dollars worth of dollars and what we found out in two thousand and eight is that the world needs dollars because the seven hundred trillion dollars worth of derivatives that are floating around the global banking system are priced in dollars and that any unwinding that happens. is requirement to require dollars to make that happen so there's just a demand for dollars and how do you square that circle john because as long as the situation is a teetering on the extinction they'll be a demand for dollars to on why the derivatives contracts that are causing the
problem yes part of what's keeping dollars as strong now is that debt in dollar terms creates a demand for dollars like you said so people are out there trying to find dollars and borrowing in order to pay off their existing debts but that's one of those things that can keep the game going for a while longer but won't save the dollar in the end because once people lose confidence in a currency the change happens very fast you know historically you know you see a system going on and going on and going and then just falling apart you know why more germany was like two years it's still a hyperinflation that we we remember to this day and yet it was over in the blink of an eye just because people lost confidence in that currency and the same thing will happen to the dollar eventually if this history is any guide but. there they do have tools and there is a system that's which kind of tends towards keeping the dollar going for a while but again it's you know all of this is going to go until it stops and we
can't know when that's going to go i mean we we couldn't know the day that the housing bubble was going to burst word be tech stock bubble bubble was going to burst but eventually they burst and the same thing will be true of the dollar bubble when it happens who knows but it does feel like it's it's imminent and so the really interesting argument is going to happen at the bottom when everything is falling apart and then you know what we're talking about now we're basically impotent because public opinion doesn't really matter anymore to these guys but at the bottom it will you know will be able to have an argument about them whether to have a constitutionally limited government with some money we're going to be have a row and have a you know a strong central government that controls everything and that day. coming and it's going to be a really interesting debate but right now all that's left. is to just watch or try to protect our own finances and then be ready to try to change all right john a beano and we're out of time thanks so much for being on the kaiser report thanks
max all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert all of them i guess john rubino of dollar collapse dot com if you want to send me an e-mail please do so at kaiser report at r t r u. and of course you can follow me on twitter at max kaiser until next time ask out or saying goodbye i'll. sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you. are welcome to the big picture. mission. critical three. three.
a lot joe marvin in washington d.c. and here's what's coming up tonight on the big picture up to this point mitt romney has been running a content free campaign but after his r. and c. speech last night it looks like he'll continue to do so but what else can we expect with just a bit more than two months to go until the election and what affect my voter suppression idea laws avalon and all that and more and tonight's big picture rumble and later when mitt romney talks about bain he claims he built it on his own but that i'm still a take i'll tell you what really happened at bain on iraq and the dark side of bailouts and sellouts in the united states of america.
it's friday are you ready to joining me tonight for tonight's big picture rumble robinson deputy director of the paul revere project and contributor to human events the blaze the national review called williams attorney and progressive strategist and austin peterson director of production for freedom works great to have you all with us to see you all romney's big night of last night that the r. and c. and up to this point he's pretty much been very nonspecific about everything he's been talking in generalities and platitudes heroes may work but the center for american progress pointed out he made no mention of financial reform he made no mention of climate change you made no mention of immigration he made no mention of afghanistan or syria no mention of social security no mission of veterans which is kind of odd for a republican and of course no mention of romney care is he going to continue a content free campaign like this where he then goes why should we what's the point
of putting on a concert in there. and all you could do is alienate people say this is the time when all of the candidates have the big rush to the middle this is where you go for the moderate voters this is where you go and you talk about thanking everybody dupes and voters moderate voters the i wouldn't call him stupid voters i mean i'm not running for office but i mean the sheeple is that what some people refer to them as but why in the world would romney ever want to give specifics because we saw what happened to his to his v.p. candidate when he gave specifics about how he would cut the budget romney probably plans to do something similar to cut the budget of the last thing you want to do is tell people you want to cut the budget because they'll freak out so it doesn't sound like a strategy that we were thinking when they go why would you even pick paul ryan as your v.p. candidate if you're not going to talk substantively about the issues and that's what he that's why he said he picked paul ryan because he want to have a real conversation about the real problems that are facing america so now here's your time to talk about the problems and you fail to do so you give all these wonderful flowery speeches and wonderful rhetoric but there's no fences there's no plan he has no plan because he is it possible that paul ryan was actually shoved
down their throat by the koch brothers and a couple of other billionaires he's there but that's that's not possible at all i think mitt romney is a leader i don't think anyone shoving anything down his throat what i think is that this is nowhere is it written down that the r. and c. speech is supposed to be. talk about your specific economic goals lay down some principles lay down some top marginal tax rates so the aren't you speeches for and he was specific he was a specific about his faith he was specific about his family what matters to him and the reasons why he's going to be a better president barack obama there is a reason that he never asked obama the only thing i'm not barack obama that's why i went about what's going on every question i was asking is what are we going to see over the next two months until the election i really are going to start seeing i mean i think we will see some specifics but i lost in that there are so there's definite strength in not putting specifics out there because that he wasn't a target and back obama knew that better than anyone else he was the most mysterious and least the final reason that we have come out in terms of almost
a. that he was going to vance he was going to close down guantanamo bay which he didn't do because the republicans refused to. release absolutely true because he couldn't find another place to keep all the very dangerous criminals one of those that was blocked in the house of representatives by paul ryan and that other cobol of fourteen guys who met the clock is true in the evening of the inauguration and swore a blot oath to each other that they would do everything they could to block the obama administration robert draper's written a book about it and i'm i'm wrong obama's been the neo-cons best friend he's been assassinating american citizens absolutely rock obama is the ultimate neo con because he's been following the neo con platform he's assassinated american citizen without a very short story here out here with me is devoid of substance which is why he picked the one person i never how the party that has a little bit of that unfortunately has stepped into it like kill the poor i don't know why the right because i'm happy with a bronco obama reelection i mean a basically a mitt romney presidency when take you know would sort of be the devil you don't
know why would we want to keep rock obama on hand if you want to keep the money flowing to wall street and if you want to keep the wars going overseas you could you've got everybody out here i don't think i was right on these the devil we don't know i think there's a lot we know about it was a very successful businessman and he actually sort of was in america his company actually being you know marriage to a lot of people in america to believe in america that doesn't mean that i was a loser no one in the white house who believes that america that in time you know you don't have the right policy in ninety nine hundred eighty nine bean was was broke romney had made some really bad decisions the company was so broke he took the company was so broke they had to be bailed out by the f.b.i. see and they screwed the f.d.i.c our government they paid them thirty cents on the dollar and that's how being got back on their feet with a government bailout. you're telling me this is the guy who's going to show us how to run the business bry there's tons of companies still around that he helped streamline that he helped. everyone everybody buy in school supplies is going to be going to staples was it all take risks with your they're going to tax dollars i
mean we need to have risk the risk of or even taking the risk taking the medicare and social security the risk we're taking when we leverage our future on these unsustainable entitlement programs that's the results are not as i want to i'm going to fix it those that are it is best on the program something that when we pay into those we get the money back out and i'm not going to get social security no i'm paying in because you think i'm going to play also just like you just like you don't need it if tomorrow you walked out here and god forbid got hit by a bus and were disabled for the rest of your life you would be on social security starting the day after tomorrow i've yes and i had social security is there for the woman that for october i still wouldn't vote for barack obama because i know that at the end of the day regardless of the check i'm getting from the government that the entire country is on an unsustainable path it's just mapi bad guys not ryan has said i think it's funny but we're going to cry lobbyists anything any any serious around the public testimony he has waited.